[Code of Federal Regulations]

[Title 48, Volume 1]

[Revised as of October 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 48CFR48]



[Page 915-916]

 

            TITLE 48--FEDERAL ACQUISITION REGULATIONS SYSTEM

 

                CHAPTER 1--FEDERAL ACQUISITION REGULATION

 

PART 48_VALUE ENGINEERING--Table of Contents

 

                  Subpart 48.1_Policies and Procedures

 

48.103  Processing value engineering change proposals.



    (a) Instructions to the contractor for preparing a VECP and 

submitting it to the Government are included in paragraphs (c) and (d) 

of the value engineering clauses prescribed in subpart 48.2. Upon 

receiving a VECP, the contracting officer or other designated official 

shall promptly process and objectively evaluate the VECP in accordance 

with agency precedures and shall document the contract file with the 

rationale for accepting or rejecting the VECP.

    (b) The contracting officer is responsible for accepting or 

rejecting the VECP within 45 days from its receipt by the Government. If 

the Government will need more time to evaluate the VECP, the contracting 

officer shall notify the contractor promptly in writing giving the 

reasons and the anticipated decision date. The contractor may withdraw, 

in whole or in part, any VECP not accepted by the Government within the 

period specified in the VECP. Any VECP may be approved, in whole or in 

part, by a contract modification incorporating the VECP. Until the 

effective date of the contract modification, the contractor shall 

perform in accordance with the existing contract. If the Government 

accepts the VECP, but properly rejects units subsequently delivered or 

does not receive units on which a savings share was paid, the contractor 

shall reimburse the Government for the proportionate share of these 

payments. If the VECP



[[Page 916]]



is not accepted, the contracting officer shall provide the contractor 

with prompt written notification, explaining the reasons for rejection.

    (c) The following Government decisions are unilateral decisions made 

solely at the discretion of the Government:

    (1) The decision to accept or reject a VECP.

    (2) The determination of collateral costs or collateral savings.

    (3) The decision as to which of the sharing rates applies when 

Alternate II of the clause at 52.248-1, Value Engineering, is used.

    (4) The contracting officer's determination of the duration of the 

sharing period and the contractor's sharing rate.



[48 FR 42443, Sept. 19, 1983, as amended at 54 FR 5057, Jan. 31, 1989; 

64 FR 72449, Dec. 27, 1999]